OVERVIEW

MKP Capital Management is a diversified investment manager. Since its founding in 1995, the firm has operated with a long-term approach to investing. Each of the firm’s discretionary global macro, credit, and fixed-income relative value strategies share the objective of producing high risk-adjusted returns over the long term. MKP believes that integrity, transparency, and alignment of interests are essential, uncompromising parts of our business model.

QUICK FACTS

1995
Year founded
25
Years average industry experience for Investment Committee members
6
Core values defining the firm's culture

MKP’S STORY

MKP Capital Management was founded in 1995 by Patrick McMahon, Eric Keiter, and Maurice “Chip” Perkins. The three founders had worked together in the fixed-income division of Salomon Brothers. In establishing MKP, the founders thought then about succession and building an enduring firm.

In 1996, MKP launched its first fund, a fixed-income relative value strategy with $18 million. The strategy focused primarily on U.S. rates and Agency mortgages. A drawdown in 1998 forced the early and quick learning of important lessons, some of which many in the industry wouldn’t learn until a decade later during the global financial crisis. The founders learned the importance of diversification, both for the strategies they managed and for safeguarding their clients’ assets. These lessons proved to be invaluable and prepared the firm to succeed through the global financial crisis of 2007-2008.

In 1999, MKP expanded further into fixed-income markets with the launch of our credit strategy. Evolving to meet market opportunities in the U.S. and Europe, our credit business continues to invest today. Only two years later in 2001, MKP launched a global fixed-income macro strategy to capitalize on the increasingly global and interconnected nature of financial markets. During the period around these two fund launches, we also registered as an investment adviser with the SEC and hired our first internal counsel.

In 2006, it wasn’t only the investment environment that presented challenges. At the end of that year Eric Keiter, the “K’ in MKP, retired from the firm and the industry. The first retirement of one of our founders led to a series of institutional developments at MKP, including a renewed sense of purpose that set the stage for what the firm would look like over the next decade and today. The firm named its first independent Chief Risk Officer and appointed him as a member of a newly established Investment Committee.

In addition, MKP identified and set a commitment to operate by the firm’s six core values, including an emphasis on a collaborative and transparent work process and environment. We institutionalized our research and risk management capabilities, and we prioritized the development of a robust infrastructure, including a proprietary risk and portfolio management system, RCPM®, which embodies our risk and investment philosophy.

Our disciplined approach to risk management proved to be a valuable component of our investment process. We believe this set us apart from our peers then, and continues to do so today. The consequences of our earlier decisions and actions became clear to us and to the markets during the global financial crisis. We did not suspend redemptions nor gate our investors. Our long-term approach put us in a position of strength.

Consistent with the founders’ desire to set MKP on a course for true long-term success, in 2007 the firm elevated two senior executives to the role of Principal, demonstrating that generational ownership transfer can happen smoothly and successfully. This was followed five years later by the retirement of Chip Perkins, the “P” in MKP. Subsequently, new Principals have been appointed and others have moved on, and in 2013, the firm sold a minority stake to a fund managed by Dyal Capital Partners and its affiliates. Our transitions demonstrate the founding concept of building an enduring firm that not only survives its founders, but is successful after them, a rarity in this industry.

Today, by operating discretionary global macro, credit, and fixed-income relative value strategies, we believe MKP’s investors benefit from better insights across each strategy as well as from the depth of our expertise within each strategy. Throughout the firm’s history, MKP has believed in transparency to our clients, serving their needs first and offering solutions to their challenges. This started with traditional commingled fund accounts, and then evolved to include an opportunistic short credit strategy during the financial crisis. More recently we have provided separate accounts and funds of one, each with custom client guidelines. We offer socially responsible, FX-hedged, multiple volatility profiles, and other custom and limited exposure investment solutions. We continue to look for new ways to serve our clients.

We believe this approach has allowed us to best focus on our clients’ needs, performance, and the business. Over twenty years in, we look forward to continuing our partnership with clients far into the future.

PRINCIPALS

PATRICK McMAHON

Founder | Chief Investment Officer

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PATRICK McMAHON

RICHARD LIGHTBURN

Principal | Chief Executive Officer

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RICHARD LIGHTBURN

THOMAS D. DeVITA, Esq.

Principal | Chief Operating Officer/Chief Financial Officer

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THOMAS D. DeVITA, Esq.

HENRY I. LEE

Principal | Chief Risk Officer

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HENRY I. LEE

CORE VALUES

Accountability

Passion

Excellence

Valuing people

Ethics and Integrity

Teamwork

COLLABORATION, A FOCUS ON FUNDAMENTALS, A WILLINGNESS TO TAKE A LONG-TERM APPROACH AND A COMMITMENT TO EXCELLENCE AND CONSTANT IMPROVEMENT ARE KEY PILLARS OF THE INVESTMENT CULTURE.

INVESTMENT STRATEGIES

Discretionary Global Macro

Discretionary global macro strategy that uses a top-down fundamental approach to identify and exploit economic and financial imbalances in asset markets to produce high risk-adjusted returns over long term. Our underlying strategies include Rates, Currencies, Agency Mortgages, Corporate Credit and Equities.

Diversified credit

Long-short diversified credit strategy emphasizing bottom-up fundamental analysis informed by a top-down macro view. Expertise across the capital structure and asset classes. Our underlying strategies include Agency Mortgages, Corporate Credit and Structured Credit (CLO, CMBS and RMBS).

Fixed-Income Relative Value

Fixed-Income relative value and relative value-style trading with a unique ability to view opportunities through a top-down macro lens and bottom-up strategy specialists. Our underlying strategies include Agency Mortgages, Corporate Credit and Global Rates.

3
Core Strategies
30
Markets Covered
200
Instruments Traded

CLIENT-DRIVEN SOLUTIONS

Alignment of Interests

    • – Economics
      – Transparency
      – Understanding
      – Communications
      – Partnership
      – Value Proposition

Client Solutions

    • – Proactive, client-first approach
      – Single, collaborative team with global reach
      – Dedicated, relationship manager coverage
      – Thoughtful, solutions-oriented communication

Product Offerings

    • – Commingled Vehicles
      – Managed Accounts / Fund of One
      – Socially Responsible Investing (SRI)
      – Custom Solutions

CONTACT US

 

OFFICES

New York

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MKP Capital Management
600 Lexington Avenue

New York, NY 10022
+1 (212) 303-7100

London

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MKP Capital Europe
23 Savile Row, 2nd floor

London W1S 2ET
+44 20 7747 1700

 

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